Piraeus Port Strengthens Position on New Silk Road
- Business & Finance
Greek Piraeus Port Authority has entered into a Memorandum of Understanding (MOU) with Shanghai International Port Group to develop synergies that will improve trade and create new business opportunities.
The parties said that the deal, signed on June 12, further highlights Piraeus’s strategic position on the world map and especially on the New Silk road.
Under the deal, PPA and Shanghai International Port Group plan to cooperate on project studies, staff training, information exchange, technical assistance, etc.
“The key objective pursued through the close cooperation in the above areas is the development of synergies that will improve trade and create new business opportunities. There is also provision for joint discussions with shipping companies to seek the possibility of further improving the shipping service between Shanghai Port and Piraeus Port,” the PPA said.
The port authority added that China’s COSCO Shippig Group also entered into a Memorandum of Understanding with Shanghai International Port Group.
In August 2016, port operator Cosco Group (Hong Kong) Limited officially acquired a 51 percent stake in the Greek Piraeus Port Authority for EUR 280.5 million. The company has an option to acquire the remaining share of 16 percent in the port over a period of five years for EUR 88 million.
The tender process for the sale of 67% of the shares of the Piraeus Port Authority was launched in March 2014, but the stake has since been downsized to 51 percent.
The deal includes an investment of EUR 350 million in the port over a period of ten years, which would be used to update the cruise and shipbuilding industry and develop the port’s facilities and services.